Jobs, Wages, & Unemployment | Media Matters for America

Jobs, Wages, & Unemployment

Issues ››› Jobs, Wages, & Unemployment
  • Fox & Friends finally admits right-wing media's favorite economic statistic is misleading

    After years of hyping declining labor force participation rate, Fox & Friends points out that the statistic isn’t useful for measuring economic activity

    Blog ››› ››› MEDIA MATTERS STAFF

    This morning, Fox & Friends pointed out that the labor force participation rate, a favorite statistic cited by Fox News during the Obama administration to dismiss economic successes, can be a misleading indicator of the health of the job market. Fox spent years using a declining labor force participation rate to portray the job market in a negative light while hyping grossly exaggerated claims about the so-called “real unemployment rate.” And President Donald Trump also used the network’s purposeful distortion of the labor force statistic during the 2016 election campaign.

    In 2010, the Pew Research Center reported that “10,000 Baby Boomers” will reach retirement age “every day for the next 19 years,” and, as The Washington Post’s Glenn Kessler pointed out in 2014, “The composition of the labor force has been affected by the retirement of the leading edge of the Baby Boom generation.”

    On the December 5 edition of Fox & Friends, when co-host Brian Kilmeade mentioned the lagging labor force participation rate during a discussion of the health of the economy under Trump, co-host Steve Doocy was quick to point out that the statistic was misleading because “a lot of those people are retired.” The about-face is yet another example since Trump's inauguration in which Fox has abandoned its conspiratorial portrayals of the labor market, often going out of its way to put a positive spin on numbers they would have trashed during the Obama administration:

    BRIAN KILMEADE (CO-HOST): There’s two things I'm looking at, the trade deals and the workforce. So only 60 percent of the workforce is working right now. How do we get those people into the game?

    STUART VARNEY: I don't have an answer to your question. I do believe, however, that when you restore prosperity and you've got real growth, people will be enticed back into the labor force because there’s a decent job available. It makes sense to go back into the labor force, if that’s the case.

    STEVE DOOCY (CO-HOST): But also, a lot of those people are retired.

    VARNEY: Yes, a lot of the people are retired, that’s very true.

    KILMEADE: Yeah, I don't want to make them work again. I mean they’re fine.

    DOOCY: Move to Florida.

    VARNEY: I should be retired.

  • Ali Velshi and Stephanie Ruhle unleash a torrential debunking of a GOP congressman's tax policy lies

    This is exactly how journalists need to treat the Republicans’ messaging nonsense on their giveaway to the rich

    Blog ››› ››› CRAIG HARRINGTON

    MSNBC hosts Ali Velshi and Stephanie Ruhle thoroughly debunked conservative talking points about the Republican Party’s pro-corporate tax policy during an interview with an ill-prepared member of Congress, who was attempting to build support for his party’s proposed tax changes that overwhelmingly favor the wealthy.

    During the December 4 edition of MSNBC Live with Velshi and Ruhle, Velshi presented a detailed outline of the many ways in which Republican tax bills in the House and Senate will fall short of GOP promises and commitments. Velshi noted that numerous independent analyses have shown the GOP plans will add upwards of $1 trillion to the national debt, and pointed out that despite “huge changes made to our tax code … we’ve seen no observable shift to long-term growth rates in the last 150 years.” Velshi also pointed to a survey conducted by the University of Chicago’s Booth School of Business, which found that none of the 42 leading economists surveyed believe the plans will be able to boost economic growth rates by enough to make up for lost revenue. He concluded the segment by pointing to a recently-released Goldman Sachs analysis of the Senate tax bill, which concluded that economic growth stemming from the tax bill will be lower than Republicans have claimed, and, as Velshi stated, “possibly even … negative” after a few years:

    Immediately after outlining all the problems in the GOP tax plans, MSNBC invited Rep. Chris Stewart (R-UT) on the program and gave him an opportunity to defend his party’s policy priorities. Stewart’s performance did not go as he might have anticipated, with co-hosts Velshi and Ruhle taking turns debunking GOP talking points and pillorying Stewart’s excuses for the tax plan.

    The co-hosts rebuffed Stewart’s repeated assertions that tax cuts for profitable corporations and wealthy individuals will boost economic growth (a 2012 Congressional Research Service study found no correlation between income tax rates and economic growth, and a 2014 study from the Brookings Institution argued the relationship between tax cuts and growth was “theoretically uncertain”), they corrected his false claim that the United States has the world’s highest corporate taxes (effective corporate rates are the same as other developed countries), and they called out his false claim that “the American people want us to do this” (the GOP tax plans are actually extremely unpopular). When Stewart claimed the GOP plans are effective in simplifying the tax code, Ruhle challenged him over and over to name a single corporate loophole that is being removed (he couldn’t), and both co-hosts stung Stewart over how Republican plans fail to address the so-called “carried interest” loophole, which helps extremely high-income individuals avoid paying taxes on some of their income.

    By the end of his nearly 11-minute grilling, Stewart was actually defending the discredited theory of “trickle-down economics” by name, which Velshi correctly noted was such a disaster in Kansas that the state’s Republican-dominated legislature had to abandon their conservative tax agenda.

    This takedown from Velshi and Ruhle is not the first time the MSNBC duo has discredited the GOP’s hollow economic message. Both Velshi and Ruhle have spent considerable time over the past several months pointing out that the Republican agenda favors wealthy individuals, profitable corporations, and the Trump family at the expense of lower- and middle-income Americans. This important work in correcting purposeful misinformation about the GOP's right-wing agenda is all the more important as Republican lawmakers prepare to enact tax policy changes that could affect millions of Americans for years to come.

  • 4 ways right-wing media are shilling for tax reform (and why they're wrong)

    ››› ››› JULIE ALDERMAN

    Right-wing media have been relying on debunked myths and partisan spin in order to defend the Republican tax overhaul efforts, which have passed in the House of Representatives and advanced in the Senate. Conservative media figures are pushing falsehoods about the corporate tax rate and the impact the proposals would have on the wealthiest Americans while downplaying the negative impacts of repealing the Affordable Care Act’s individual mandate.

  • After years of nitpicking Obama, Fox sees nothing to worry about in September jobs report

    Blog ››› ››› CRAIG HARRINGTON


    Fox News / Screengrab

    Fox News seemed unfazed by the Bureau of Labor Statistics’ (BLS) estimate that the economy lost 33,000 jobs last month -- a figure far short of most economist’s expectations. The network’s rosy interpretation of an aberrant monthly jobs report stands in stark contrast to years of nitpicking and misrepresentation during the Obama administration, and it reveals once again that Fox is working to prop up President Donald Trump.

    According to the BLS’ monthly employment report for September 2017, the economy lost 33,000 jobs last month while the unemployment rate fell to 4.2 percent. Job creation for the months of July and August was revised down by a combined 38,000, meaning that the average pace of job creation over the past three months fell to just 91,000. According to a BLS statement, part of the job loss in September was the result of hurricanes Harvey and Irma, which may have disrupted data collection and likely prevented some businesses from hiring. The storms devastated parts of Texas and Florida and are expected to exert downward pressure, at least temporarily, on the overall economy.

    The impact of the hurricanes was no surprise, but economists surveyed by The Wall Street Journal still predicted roughly 80,000 new jobs to be created last month. As Business Insider reported, if the economy did indeed lose jobs in September (final revisions are due in December), it would mark the first negative month of job creation since 2010. As New York Times reporter Ben Casselman noted, the economy had created jobs for 83 consecutive months:

    During the Obama administration, the team at Fox News would have pounced on a jobs report with such a stark negative jobs number. Indeed, when the jobs figure from December 2016 merely came in under expectations, Fox claimed it was proof that the Obama economy was sputtering and “sick.” Fox completely reversed the tone of its economic coverage after Trump’s inauguration, and that reversal was on full display this morning.

    Fox & Friends covered the report for mere seconds before moving on to other news, but co-host Abby Huntsman worked in mentions of the hurricanes and lower unemployment rate while glossing over job losses:

    On Fox Business’ Mornings with Maria Bartiromo, the host and guests spent several minutes hyping record stock market valuations and stressing that the September jobs number should be ignored due to damage from the hurricanes. After correspondent Adam Shapiro unveiled the report, guest Joanie Courtney pivoted away from the job losses to highlight “positive news in this report,” including wage growth and a slight uptick in labor force participation. The rest of the panel then spent the next several minutes explaining why stock investors should not be worried by a single monthly hiccup:

    On Fox Business’ Varney & Co., host Stuart Varney opened his show by bragging that what he calls “the Trump rally” on the stock market has created trillions of dollars of wealth since Election Day. Varney dismissed the job losses in September before claiming that the backbone of the economy was “humming along.” In a later segment, Varney returned to bragging about the supposed “Trump rally” -- he has promoted this fiction for months, crediting Trump for positive economic trends inherited from the prior administration -- with author and investment analyst Hunter Lewis. To Varney’s surprise, Lewis immediately threw cold water on boasts about the economy, warning that he believes the stock market is “in a bubble” and may actually be headed for “a nasty correction”:

  • In honor of Labor Day, Fox & Friends let an obscure acupuncturist lie about raising the minimum wage

    Blog ››› ››› ALEX MORASH

    Fox News used an unqualified crank to push discredited right-wing media myths about the economic costs of raising the minimum wage in response to Fight for $15 rallies held across the country on Labor Day.

    On the September 5 edition of Fox News’ Fox & Friends, co-host Steve Doocy hosted Kevin McNamee, an obscure chiropractor and acupuncturist, to discuss rallies held in Boston, Chicago, Milwaukee, and Oakland where demonstrators called for raising the minimum wage. McNamee claimed raising minimum wages takes profits away from business owners and hurts the economy. He further claimed that Seattle, WA, -- a frequent target of anti-minimum wage attacks -- had seen companies in the hospitality sector go out of business, which in turn led to job losses, as a result of the city’s minimum wage increase, concluding “it’s not rocket science here.”

    McNamee’s only prior experience with economic policy arguments relating to the minimum wage appears to be a letter to the editor that appeared in The New York Times in May 2015, which serial minimum wage misinformer Mark Perry mentioned in an American Enterprise Institute blog post. In the letter, McNamee bizarrely declared his acupuncture business was “not a charity” and that he did not wish reduce his personal profit by paying his employees living wages.

    Counter to McNamee and Fox News’ assertions, actual economic research has found raising the hourly minimum wage neither hurt small businesses nor lead to job loss. Looking at minimum wage increases over a 20-year period, researchers at Cornell University found that raising the regular and tipped minimum wage for workers in the restaurant and hospitality industries has "not had large or reliable effects" on the number of people working in those industries. Furthermore, since Seattle started phasing in increases to the city’s minimum wage in April 2015, the metro area has continued to grow and add jobs. From the Federal Reserve Bank of St. Louis:

    Fox has repeatedly pushed myths that raising the minimum wage kills jobs and hurts the economy, and has given business owners a platform to bemoan paying workers a living wage. Despite Fox’s years-long misinformation campaign, a majority of Americans support raising the federal minimum wage and states and municipalities have continued to increase their minimum wages.